Regulatory Alerts2019-12-05
Conduct Standard on Net Asset Valuation Calculation and Pricing for Collective Investment Scheme Portfolios
The Financial Sector Conduct Authority has finalized a new Conduct Standard mandating specific net asset valuation calculation and pricing methodologies for South African collective investment scheme portfolios. Following a public consultation that incorporated 147 industry comments, the Authority converted the draft Notice into an enforceable standard under the Financial Sector Regulation Act, clarifying key definitions such as clean price, net asset value, and service charges. The revised framework establishes core operational principles of fairness, consistency, transparency, and accuracy while detailing valuation procedures for securities, income accruals, and class-specific pricing to ensure regulatory compliance and industry alignment.